BranchOut Food secures $2.8 million in new warehouse club orders

BEND, Ore. - BranchOut Food Inc. (NASDAQ:BOF), a small-cap food technology company with a market capitalization of approximately $25 million, has received more than $2.8 million in new orders from the nation’s largest warehouse club as its products gain traction across multiple regions, according to a company press release. The company’s stock has shown remarkable momentum, delivering a 221% return over the past year, according to InvestingPro data.

The orders include reorders for Pineapple Chips in the Southeast and Midwest regions, as well as expanded distribution of Organic Chewy Banana Bites following what the company described as a successful launch in Los Angeles.

The Southeast region placed its third major reorder with four truckloads of Pineapple Chips totaling $714,000 delivered in June and July. The Midwest region placed a new $655,000 Pineapple Chips order, bringing its total orders to over $1.8 million across three products.

Following its Los Angeles region launch, Chewy Banana Bites secured an $860,000 Midwest order for the third quarter along with a $215,000 order from the Bay Area.

BranchOut’s new Crunchy Strawberry Halves will launch in the Los Angeles region in August, replacing a freeze-dried imported product from China. The company stated this represents a significant milestone as strawberry is traditionally a top-selling item in the freeze-dried fruit category.

"We’re seeing real momentum behind multiple items within the warehouse club channel, which is exactly what we aimed to achieve with our GentleDry technology and snack innovation strategy," said Eric Healy, CEO of BranchOut Food. This momentum is reflected in the company’s impressive revenue growth of 96% in the last twelve months, though InvestingPro data shows the company operates with relatively thin gross profit margins of about 14%.

The company reports that both Pineapple Chips and Chewy Banana Bites are exceeding the retailer’s sales velocity thresholds. BranchOut also has additional products in development, including Apple, Mango, Dragon Fruit, Snack Mixes, and Multi-packs.

BranchOut Food uses its proprietary GentleDry Technology to produce dehydrated fruit and vegetable-based products that preserve up to 95% of the original nutrition of fresh produce, according to the company. While the company shows promising technology and growth, InvestingPro analysis indicates challenges with cash burn and short-term obligations. InvestingPro subscribers have access to over 10 additional key insights and detailed financial metrics about BranchOut Food’s business health and valuation.

In other recent news, BranchOut Food Inc. announced that its Cinnamon Churro Banana Chips have been selected for inclusion in the U.S. Army’s upcoming field test of the Close Combat Assault Ration (CCAR). This test is part of the 2025 CCAR initial operational test and evaluation, where feedback will be gathered from soldiers. Additionally, BranchOut Food has secured a $1 million cash infusion from Kaufman Kapital LLC through the early exercise of warrants, aimed at strengthening the company’s balance sheet and aiding in debt repayment. The agreement with Kaufman Kapital includes purchasing 1,000,000 shares of BranchOut’s common stock, alongside several amendments to existing financial arrangements. These amendments extend the maturity dates of promissory notes and the expiration date of a separate warrant to purchase additional shares. The strategic agreement is set to be completed no later than June 16, 2025. These developments underscore BranchOut Food’s efforts to enhance its financial stability and expand its product reach.

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